Over the past two months, investors have experienced a strong bullish trend, primarily driven by mega-cap indexes. However, in recent days, there has been a pause in the upward momentum of large companies, prompting investors and traders to seek fresh and profitable opportunities.
While the small-cap market has faced significant challenges over the past year, resulting in both substantial risks and potential rewards, given the ongoing uncertainty in the markets, investor’s focus should be on companies that exhibit growth potential, profitability, and are currently undervalued as the preferred strategy.
Alarum Technologies (ALAR) serves as an excellent example. The trends and performance of its shares are promising, with significant untapped market cap potential. An analysis of more than 2600 Nasdaq-listed companies with valuations under $300 million reveals that ALAR outperformed all other companies by 96% in the last quarter, the stock has seen a remarkable 65% surge in value, accompanied by an increase in daily trading volumes.
Alarum has recently disclosed its earnings for the third quarter of 2023, marking a significant milestone as it achieved its first-ever profitable quarter. During this period, the company reported a net profit of $1.1 million, a notable turnaround from the net loss of $2.3 million recorded in the comparable third quarter of 2022. Furthermore, the company’s revenues for the third quarter reached $6.7 million, as compared to $4.8 million for the same period in 2022, reflecting a robust 42% growth alongside an impressive high gross profit margin of 77%.
In addition, the cumulative revenues for the first three quarters of 2023 amounted to $19.4 million, surpassing the total revenues generated in the entirety of the year 2022. This underscores Alarum’s remarkable financial progress and expansion over the recent quarters.
Alarum revealed a cash balance of $7.7 million, derived from operational cash flow as well as a recent private investment which included the company’s leadership team- CEO and CFO.
With a potential addressable market for Data Collection of over $17 billion, with a strong hold in AI based technologies and highly scalable business model, Alarum is a one to watch.
